Energy
Wednesday, April 3rd, 2024 3:11 pm EDT
Key Points
- Crude oil futures saw a rise, extending recent gains, following an OPEC+ committee meeting that concluded without recommending changes to production policy.
- The West Texas Intermediate (WTI) contract for May delivery increased by 0.85% to $85.87 a barrel, while the Brent contract for June delivery rose by 0.87% to $89.69.
- Some OPEC+ members, including Russia, are voluntarily cutting 2.2 million barrels per day of production through at least the second quarter, and the Joint Ministerial Monitoring Committee ended its meeting without suggesting alterations to the current production policy, leaving recommendations for consideration at a formal OPEC+ meeting.
Crude oil futures saw a rise on Wednesday, extending a recent trend of gains following an OPEC+ committee meeting that concluded without recommending changes to production policy. The West Texas Intermediate (WTI) contract for May delivery climbed by 0.85% to $85.87 a barrel, while the Brent contract for June delivery increased by 0.87% to $89.69. OPEC and its allies, including Russia, have been voluntarily cutting production by 2.2 million barrels per day through at least the second quarter. The Joint Ministerial Monitoring Committee’s meeting ended without proposing adjustments to the current production policy, leaving recommendations for consideration at a formal OPEC+ meeting. The oil market has seen a surge this year, with U.S. crude and the global benchmark rallying approximately 20% and 16%, respectively, driven by improving economic growth expectations that are anticipated to result in a deficit of 450,000 barrels per day in the second and third quarters, according to Bank of America. This week’s increase in crude oil prices was further fueled by mounting geopolitical tensions, including Ukraine’s drone strikes on Russian energy infrastructure and Iran’s vow to retaliate against Israel for an alleged bombing incident in Damascus. The escalating tensions between Israel and Iran have reignited concerns about a broader conflict in the Middle East, raising fears of potential disruptions in crude supplies.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/03/crude-oil-prices-today.html
